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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 17 August 2025
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Displaying 1311 contributions

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Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 2 May 2023

Jeremy Balfour

I am speaking more generally.

Delegated Powers and Law Reform Committee

Trusts and Succession (Scotland) Bill: Stage 1

Meeting date: 2 May 2023

Jeremy Balfour

I wonder whether I can follow up that point by asking how a trust can get best financial benefit. If it is meeting other charitable needs, is that enough? Could the bill express that a bit more clearly? Does there need to be a slight clarification with regard to a trust—say, a charitable trust—always feeling that it has to get best value from its investments or property sales?

Social Justice and Social Security Committee

Cost of Living (Disabled People and Unpaid Carers)

Meeting date: 27 April 2023

Jeremy Balfour

I cannot see that, convener, so I hand back to you to chair the questions, if that is okay.

Social Justice and Social Security Committee

Cost of Living (Disabled People and Unpaid Carers)

Meeting date: 27 April 2023

Jeremy Balfour

Good morning, panel—it is great to have you with us.

I will move on to look at the effectiveness of temporary cost of living assistance. We are looking at which short-term measures have the greatest impact and at what measures could be implemented in the future.

I will start with a general question. Most of the recent cost of living assistance benefits have targeted families with young children—the best start grant and the Scottish child payment, for example—and that has been welcome and right. However, are you concerned that carers, disabled people and even elderly people are being left behind? If so, what support do they require?

Delegated Powers and Law Reform Committee

Moveable Transactions (Scotland) Bill: Stage 2

Meeting date: 21 March 2023

Jeremy Balfour

I thank the minister for his amendments on electronic documents in the previous group, which were really helpful. I welcome them completely.

My amendment 85 is almost identical to amendment 53. I have nothing further to add. If amendment 53 is agreed to, I will not move my amendment.

Delegated Powers and Law Reform Committee

Moveable Transactions (Scotland) Bill: Stage 2

Meeting date: 21 March 2023

Jeremy Balfour

Amendment 55 deletes part of section 1(5), which will ensure that part 1 of the bill operates without prejudice to the rules relating to financial collateral arrangements.

Section 1 deals with the assignation or transfer of claims. At paragraph 11, the explanatory notes state:

“Subsection (5) provides that nothing in Part 1 applies to the assignation of a claim as part of a financial collateral arrangement within the meaning of the Financial Collateral Arrangements (No.2) Regulations 2003.”

Financial collateral arrangements are defined as

“a title transfer financial collateral arrangement or a security financial collateral arrangement, whether or not these are covered by a master agreement or general terms and conditions”.

Financial collateral arrangements are a form of security arrangement designed to simplify the process of obtaining financial collateral. Financial collateral is defined as

“either cash or financial instruments”.

Having spoken to the Law Society and others in practice, I believe that the current terms of section 1(5), which makes the proposition that nothing in part 1

“applies to the assignation of a claim as part of a financial collateral arrangement”,

lack clarity. Instead, we consider that the provisions of part 1 should be without prejudice to the rules for financial collateral arrangements.

I will now speak to amendment 56 and my other amendments in the group. As the minister and the committee will be aware, the inclusion of individuals in the bill is perhaps the most interesting and controversial part of the bill. The bill does not include the provisions on stocks and shares that were in the Scottish Law Commission’s provisional draft bill. The committee has debated the issue, and I know that the minister has made the Scottish Government’s view clear. These are probing amendments, so I do not intend to move any of them.

I am looking for clarity on why the Government thinks that it is not possible to have such provisions in the bill. When the Law Commission drafted its bill, it thought that the provisions would be legally competent, and others have given legal advice that they would be legally competent. When the minister gave evidence to the committee previously, he said that, according to the legal advice that he had received, it would be incompetent to have the provisions in the bill. Could he expand on that? In practical terms, this is one of the most important parts of the bill, because it will allow much greater freedom for business to take place, which is what we all want, so it would seem sensible to include such provisions in the bill. I ask the minister to say a bit more about the legal advice.

If the Government’s view is that such provisions cannot be included because of whatever reason the minister gives in a moment, I would like to push the minister on another matter. I appreciate that, in his letter to the committee, he said that, once the bill becomes an act, there can be more engagement with the United Kingdom Government on the matter, but I hear questions from those in practice about how long that will take. I appreciate that that involves two Governments working together, but can the minister give some sort of timescale for when that will happen in practice?

I move amendment 55.

Delegated Powers and Law Reform Committee

Moveable Transactions (Scotland) Bill: Stage 2

Meeting date: 21 March 2023

Jeremy Balfour

I thank the minister for his comments so far. He is right that amendment 79 seeks to clarify that only the execution of prior ranking diligence will extinguish a statutory pledge. In the light of his comments, however, I will not move that amendment, and I will go away and reflect on the matter with regard to stage 3.

With regard to amendment 83, I go back to a debate that we had earlier this morning. Again, this amendment seeks to extend the interpretation of a “secured creditor”. I note that the minister believes that that is already in the bill, and I accept that. However, I still think that my amendment would provide greater clarity, and I will explain briefly why. The bill does not include a “trustee or agent” in the interpretation of a “secured creditor”. The amendment provides a fuller definition of the parties defined as a “secured creditor”.

In corporate finance transactions, it is likely that a club or syndicate of lenders jointly lend to a corporate debtor. Here, one will take security in their own name as security agent or security trustee to hold the security for the benefit of all lenders. Thus, for example, HSBC, the Bank of Scotland and the Royal Bank of Scotland could jointly agree to advance a loan to ABC Ltd, in various proportions, with one of them—say, the Bank of Scotland—holding all the security granted in respect of the aggregate amount of the loan owed to all the lenders. Although the Bank of Scotland would have the benefit of the security, it would be misleading to think of it as the sole beneficiary of the security as it would be holding it as trustee or agent for all the lenders.

Amendment 83 would bring clarity and, in practical terms, it would be helpful for business. I will seek to move it in due course.

Delegated Powers and Law Reform Committee

Moveable Transactions (Scotland) Bill: Stage 2

Meeting date: 21 March 2023

Jeremy Balfour

I thank the minister for his helpful remarks. I am pleased that the timescale of next summer is still achievable. I will reflect on what he said before stage 3 but I will not press amendment 55.

Amendment 55, by agreement, withdrawn.

Amendment 56 not moved.

Section 1, as amended, agreed to.

Section 2 agreed to.

Section 3—Transfer of claims

Delegated Powers and Law Reform Committee

Moveable Transactions (Scotland) Bill: Stage 2

Meeting date: 21 March 2023

Jeremy Balfour

Do you believe that amendment 55 is incompetent? It simply seeks to amend something within the bill. I look for clarification on that if possible, minister.

Delegated Powers and Law Reform Committee

Moveable Transactions (Scotland) Bill: Stage 2

Meeting date: 21 March 2023

Jeremy Balfour

Amendment 64 is for future proofing the bill, which I hope will become an act, with regard to fees for third sector organisations. We held a helpful evidence session with a number of groups and received written evidence on the issue of the fee not having to be paid by a third sector organisation for the service if it has to go to the register. I know that the minister helpfully wrote to the committee at the beginning of this week or the end of last week to say that the Government was not persuaded of the need for such a provision. I would be interested to know a wee bit more about why the Government has gone down that road.

I accept two things. First, I accept that we want the register not to be a loss leader, if I may put it that way, but to break even. However, we also need to protect some of the most vulnerable people in our society from having an expense that might stop them being able to go forward.

Secondly, I accept that the fee that the Government imagines, which will come into force next year, is not large, comparatively speaking, but we do not know where that fee will go in future. It is possible that it could stop vulnerable people accessing a register that others can afford to access.

It is not my expectation that people from third sector organisations will use the register frequently, but I think that, when it is necessary for such an organisation to do so, the fee should be waived. I look forward to hearing what the minister has to say about amendments 64 and 81.

I move amendment 64.